Costs outpaced revenue, cutting Lotus Eye's operating margin
Standalone net profit fell 27.87% sequentially as expenses grew twice as fast as revenue, while other income contributed 53.57% of pre-tax profit.
Filed 11 Nov 2026, 19:02 IST · after market close · Lotus Eye Hospital & Institute Ltd (LOTUSEYE)
Key takeaways
- Revenue grew +3.87% QoQ, but expenses rose +7.51%, cutting operating margin by 2.86 percentage points to 14.40%.
- Standalone net profit fell -27.87% QoQ to Rs 0.44 cr despite a 17.91 percentage-point drop in the tax rate.
- Lotus Eye's 14.40% operating margin was 7.25 percentage points below the 21.65% median for 90 reported healthcare peers.
Price around the results
Q2 growth did not translate into operating profit
Lotus Eye's standalone revenue rose +3.87% QoQ to Rs 17.72 cr, but operating profit declined -13.27% to Rs 2.55 cr. Expenses grew +7.51%, nearly twice the pace of revenue, which reduced operating margin to 14.40% from 17.26% in Q1FY27.
Lower tax softened, but did not offset, the profit decline
Pre-tax profit fell -44.55% QoQ as interest expense increased +15.69% and depreciation rose +3.66%. The tax rate fell 17.91 percentage points to 21.34%, limiting the decline in net profit to -27.87%; other income accounted for 53.57% of pre-tax profit, making reported profit quality an important consideration.
Margin lagged the healthcare peer median
Lotus Eye's 14.40% operating margin was 7.25 percentage points below the 21.65% median among 90 healthcare companies that had reported the same quarter. The standalone results were filed after market close on 11 November 2026.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹18 cr | ₹17 cr | +3.87% |
| Other income | ₹0 cr | ₹0 cr | +42.86% |
| Expenses | ₹15 cr | ₹14 cr | +7.51% |
| Operating profit | ₹3 cr | ₹3 cr | -13.27% |
| Operating margin (%) | 14.40% | 17.26% | — |
| Interest | ₹1 cr | ₹1 cr | +15.69% |
| Depreciation | ₹2 cr | ₹2 cr | +3.66% |
| Profit before tax | ₹1 cr | ₹1 cr | -44.55% |
| Tax | ₹0 cr | ₹0 cr | -70.00% |
| Net profit | ₹0 cr | ₹1 cr | -27.87% |
| EPS (₹) | ₹0.21 | ₹0.30 | -30.00% |
Operating margin of 14.40% compares with a Healthcare sector median of 21.65% across 90 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 14.40% after the 2.86 percentage-point sequential decline.
- Whether expense growth moderates from +7.51% against revenue growth of +3.87%.
- Whether other income remains a large contributor after accounting for 53.57% of pre-tax profit.